Brokers who make use of TSA still earn full regulated commission as they would if they went directly to the insurers. We also know that our overall cost has to be as competitive, or better, than what a scheme can get elsewhere, in order for a move to TSA to make sense to an employer and their employees.

TSA’s fee for the role that we fulfil is made up of binder and outsource or administration fees. The insurers have effectively outsourced much of the administration they would normally do on schemes that are placed via us and so they reduce their administration fees and we add ours on.

This means that there is more of a shift in administration fee (from insurer to TSA) rather than an additional layer. Insurer fees on group schemes can be a combination of Rand per member per month costs, policy fees and percentage of payroll or premium charges as well. TSA does not charge a minimum fee and our cost is one line that starts at 10% of the premium and reduces as the premium grows.

For any further information please give us a call on 031 561 1044.

Thank you and regards,
The TSA Team

You’ll find all back issues of TSA Connect by visiting our blog.

All information provided is intended to inform and explain, but please remember to always check the current terms on policies when considering options and advising clients.

(Vol. 6 Issue 30)